Intel is exploring the idea of a sale because the businesses in its former NEX group no longer appear as relevant to the focus Tan has adopted for the company, said two of the sources.
The unit which makes chips for telecom equipment will no longer help Intel’s core strategy, one source said.
Intel’s networking business may also be sold, because companies such as Broadcom have a tight grip on crucial portions of that market, another source said.
Intel has discussed the portfolio of businesses with the general aim of deciding if it would make strategic sense to partner with another company or sell a stake in it, one of the sources said.
The discussions within Intel are at an early stage, and the company could decide to make other arrangements besides a sale for the NEX businesses.
In the year’s first quarter, Intel moved the NEX financial results into its data centre and PC groups and now does not report the segment separately. The NEX group generated revenue of US$5.8 billion in 2024, securities filings show.
Intel has already moved to shed some lines of business. In April, it sold a majority stake in its Altera unit to SilverLake for US$4.46 billion to help fund the revival effort.
Before the SilverLake sale, the company had been preparing to spin out Altera through a public offering under former CEO Pat Gelsinger, as it did with Mobileye in 2022.
Though Tan has told investors Intel plans to focus efforts on core operations that have historically been its largest revenue generators, the company has suffered significant losses in its share in the data centre and PC areas.
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